Disney (DIS) stock surges 6% after dwarfing Netflix (NFLX) subscription

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Disney (DIS) stock surges 6% after dwarfing Netflix (NFLX) subscription

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 Disney (DIS) stock surges 6% after dwarfing Netflix (NFLX) subscription
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Highlights

  • Walt Disney’s (NYSE: DIS) revenue rose 34% YoY to US$21.8 billion in Q1, FY2022.
  • Its diluted EPS attributable to Disney rose to US$0.60 from US$0.01 a year ago.
  • Its total subscriptions across its streaming portfolio increased to 196.4 million.

Shares of Walt Disney Company (NYSE: DIS) surged more than 6% on Thursday after reporting strong first-quarter earnings in the extended-hours trading the day before.

The Disney (DIS) stock was up 6.12% to US$156.24 at 10:45 am ET after reporting better-than-expected first-quarter results.

Its Q1 fiscal 2022 revenue rose by 34% to US$21.8 billion from US$16.25 billion a year ago, boosted by increased footfalls at its theme parks and resorts.

Walt Disney Company is one of the Dow Index constituents.

Its service revenue increased by 31% to US$19.5 billion in the quarter, driven by increased volumes at its theme parks and resorts. Product revenue increased by 65% to US$2.3 billion as grown food, beverage, and merchandise sales grew. 

Disney’s total subscriptions across its streaming portfolio increased to 196.4 million, including 11.8 million new Disney+ subscribers, in the quarter.

In contrast, one of Disney’s main rivals Netflix Inc. (NFLX) added only 8.3 million subscribers in its last quarter against the expectation of 8.5 million subscribers. 

The cash, cash equivalents, and restricted cash came in at US$14.49 billion as of January 1, 2022, down from US$17.11 billion as of January 2, 2021. The decrease was due to higher expenditure in its operations.

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Walt Disney (DIS) upbeat Q1 earnings maintain stock momentum on Thursday) 

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Disney’s Net Income

The company booked a net income of US$1.1 billion attributable to the company compared to a meager US$17 million a year ago. Its diluted earnings per share attributable to Disney increased to US$0.60 from US$0.01 in the same quarter a year ago. 

Its two revenue segments: Disney Media and Entertainment Distribution and Disney Parks, Experiences and Products generated US$14.58 billion (up 15% YoY) and US$7.2 billion (up 102% YoY), respectively. Its streaming services that aired hit programs like Encanto, Luca, West Side Story, Eternals, and Nightmare Alley garnered more revenue.

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The California-based company could reopen its parks and other properties with the easing of pandemic restrictions. Its theme parks saw increased number of visitors.  Walt Disney has a market capitalization of US$284.5 billion, a P/E ratio of 93.35, and an EPS of US$1.68.

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Bottomline 

According to Disney CEO Bob Chapek, the company is on track to reach 230 million to 260 million Disney+ subscribers by the end of 2024. He added that the entertainment company marked the final year of its first century with a strong first-quarter result. He said the company will keep growing and defining entertainment in the next 100 years.  

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